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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): January 5, 1999
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
(Exact name of registrant as specified in its charter)
Commission File Number: 1934 Act File Number: 1-13174
Maryland 54-1681655
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2345 Crystal Drive
Crystal City, VA 22202
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number including area code: (703) 920-8500
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Item 2. Property Acquisitions
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On January 5, 1999, Charles E. Smith Residential Realty L.P. ("the
Operating Partnership"), of which Charles E. Smith Residential Realty, Inc.
("the Company") is the sole general partner, acquired a high-rise apartment
property located in Crystal City, Virginia ("Buchanan House") for a purchase
price of approximately $60 million, from a private investment company. The
acquisition was financed with $18 million in proceeds from the December 1998
sale of Marbury Plaza (a 672 unit property in southeast Washington, D.C.), the
Company's bank line of credit and debt assumption of $7.4 million. The Buchanan
House property has 442 apartment units, averaging 1,173 square feet in size. The
property also includes a 900+ car commercial parking garage and 70,000 square
feet of commercial/retail space.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized, on this 20th day of
January 1999.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
By: /s/ W. D. Minami
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W. D. Minami
Senior Vice President and Chief Financial
Officer of the Registrant
By: /s/ Steven E. Gulley
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Steven E. Gulley
Vice President and Chief Accounting Officer
of the Registrant
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EXHIBIT INDEX
EXHIBIT NO. EXHIBIT
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99.1 Press Release dated January 5, 1999 of the Company
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EXHIBIT 99.1
NEWS RELEASE
[CHARLES E. SMITH RESIDENTIAL REALTY, INC. LETTERHEAD]
FOR IMMEDIATE RELEASE CONTACT:
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January 5, 1999 Media: John Kurtz
(703) 769-1153
Investors: Greg Samay
(703) 769-1029
CHARLES E. SMITH RESIDENTIAL ACQUIRES
442-UNIT HIGH-RISE IN NORTHERN VIRGINIA
$60 million acquisition expands leadership position in Crystal City
ARLINGTON, VA -- Charles E. Smith Residential Realty, Inc. (NYSE:SRW), the
country's premier urban multifamily real estate investment trust, announced
today that it has acquired the 442-unit high-rise Buchanan House apartments in
Crystal City for a purchase price of $60 million, from a private investment
company. With the acquisition of the Buchanan House, Smith Residential now owns
4,450 apartment units in the strong Crystal City/Pentagon City submarket,
further extending the company's leadership position in that submarket. The
acquisition was financed in part with $18 million in proceeds from the December,
1998 sale of Marbury Plaza, a 672-unit property in southeast Washington, D.C.
"Our strategy is to concentrate our property ownership in strong urban
centers, such as Crystal City, where we target urban lifestyle renters," said
Ernest Gerardi, Jr., President of Charles E. Smith Residential. "The addition
of Buchanan House increases our leading position in this key high-rise submarket
to a 68% market share, so the property's performance will benefit from our
operating and marketing efficiencies. Concurrently, we were able to finance a
portion of the acquisition through the sale of a property that was not in one
of our targeted submarkets, realizing a $15 million gain on sale and
demonstrating our commitment to enhance our portfolio by reallocating investment
capital from lower to higher growth opportunities."
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The Buchanan House has 442 apartment units, averaging 1,173 square feet in
size. Over 90% of the units have recently undergone kitchen and bathroom
renovations, and Smith Residential plans to invest $5 million in additional
renovations and upgrades. Located in the heart of Crystal City, the property
also includes a 900+ car commercial parking garage and 70,000 square feet of
commercial/retail space, which will be upgraded by Smith through its Retail
Services affiliate. The acquisition was funded from the asset sale, the
company's bank line of credit and debt assumption.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and in addition, provide a full range of real estate
services to other property owners. The Company owns a portfolio of
approximately 20,000 apartment units, has 3,400 units under construction or pre-
purchase agreement, and manages an additional 3,800 units for other owners. The
total market capitalization of Charles E. Smith Residential Realty, including
its Operating Partnership, is approximately $2.0 billion. Investor information
including press releases about Charles E. Smith Residential Realty is available
on the Company's Web site at:http://www.smithreit.com, and also through PR
Newswire "News on Call" by fax 800-758-5804, ext. 101271, or at:
http://www.prnewswire.com.
This news release contains forward-looking statements regarding the Company's
outlook, including statements of goals, intentions, and expectations regarding
or based on assumptions about general economic and market conditions,
competitive dynamics and other factors that, by their nature, are subject to
significant uncertainties, some of which are discussed in the Company's filings
with the Securities and Exchange Commission. Because of these uncertainties,
and the assumptions on which statements in this release are based, actual future
results may differ materially.
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